Northam completes R175m acquisition of mothballed Eland mine

JOHANNESBURG - South African platinum producer Northam Platinum said on Tuesday it had finalised its purchase of the mothballed Eland platinum mine from Glencore.

Northam announced in February 2017 that it would acquire full ownership of the Eland mine and ancillary infrastructure near Brits in the North West province via its wholly-owned subsidiary, Eland Platinum, for R175 million.

Northam will operate Eland Platinum on a fully integrated mine-to-market basis. Platinum group metals concentrate produced at Eland mine will be processed at Northam's Zondereinde smelter complex.

Northam's chief executive Paul Dunne said that the Eland transaction would provide the company with a medium-term option over a large, shallow resource with fully developed, world-class surface infrastructure.

"Northam is well advanced in developing its mine plan for Eland and is looking forward to recommissioning the mine to unlock the potential of this large, shallow resource," Dunne said.

"The Eland transaction further diversifies Northam's asset footprint and significantly enhances the long-term optionality and flexibility of Northam's asset portfolio."